Mr. President, Mr. Speaker, members of the General Assembly, distinguished guests and my fellow North Carolinians.

With great pride and gratitude, I report to you tonight that the state of our state has never been better.

Our economy has never been stronger. In the past six years, North Carolina has created more than 600,000 new jobs. Industrial investment has totaled $35 billion, and last year reached an all-time high of nearly $8 billion. Unemployment is the lowest it’s been in 30 years. We’ve brought new industries and new jobs -- some of them paying $60,000 a year -- to the most hard-pressed areas of our state. Because of what this legislature has done, we are building one of the strongest economies in the nation.

The violent crime rate is down 15 percent. We’ve cut North Carolina’s welfare rolls in half. Our teenage pregnancy rate is the lowest it’s been in 20 years. Smart Start has provided child care and preventive health care for more than 100,000 children. And we’re putting more money and more effort into cleaning up our rivers and coastal waters than ever before. Because of what this legislature has done, North Carolina is becoming an even better place to live and raise a family.

This has truly been a decade of remarkable progress. But the most remarkable progress -- and the progress that should make us proudest -- has come in our schools. President Clinton may have surprised you in the State of the Union address when he said that North Carolina students had made the biggest gains in test scores in the nation. That may surprise you, but it’s true. North Carolina’s not just leading the South, North Carolina’s leading the nation in education reform.

That’s not just Jim Hunt bragging on us. That’s what the National Education Goals Panel says. The Goals Panel is a bipartisan group of state and federal leaders started in 1990 by President Bush and the nation’s Governors. They reported in December that North Carolina’s schools have made more progress in more areas than any other state. Let me give you some facts that you may not know:

That’s what we’re doing in North Carolina schools, and we ought to be proud of that.

But none of that tells the full story about what North Carolina has done. You have to look at what’s happening in our communities. Like Rutherford County. Before Smart Start, the county had a long waiting list for day care, no care for children with special needs and not one AA-quality child care center.

Today, after almost four years of Smart Start, there are 12 AA day care centers. Seventy-one families that couldn’t afford child care are getting it today. Over 100 child care spaces have been created for parents who work 2nd and 3rd shifts and weekends. Seventy Head Start spots have been created. And the county is working with a nonprofit to establish a new day care center for 75 children, half of them children with special needs.

I urge every single legislator to go see what Smart Start is doing in your district, and I urge you to go visit our schools and see for yourself the progress they’re making.

Lenoir County schools raised the rate of students performing at grade level from 62 percent to 93 percent. Johnston County schools raised the percentage of students in the third through eighth grades who are scoring at grade level from 65 percent to almost 90 percent.

There’s a school in Kannapolis, Wilson Elementary School, where more than half the kids come from low-income families. But they’ve gone from having the lowest math and reading scores in that school system to having the highest. That’s the kind of progress that’s happening all across North Carolina, and we ought to be proud of that.

So the President was right when he said North Carolina is leading the nation, and the credit goes to teachers and students, parents and principals. The credit goes to the members of this General Assembly on both sides of the aisle who made a commitment to excellent schools. Because of you, it’s working in North Carolina, and you ought to be proud of that.

It’s working because we’re doing what we set out to do. When the `90s began, North Carolina had begun falling behind. There had been too much start-and-stop reform. Like a lot of states, we’d jumped on a new reform bandwagon every couple of years -- a "flavor of the month" approach. It wasn’t working.

We were determined to stop that slide. We decided we could do better. We decided to set clear goals and priorities. We vowed to stick with them. We pledged to sustain our efforts year after year.

That is what we have done. Our work has paid off. The members of this legislature have kept their commitment to excellence in education, and our schools are getting better because you made that commitment.

We’ve come a long way. But think how far we have to go. And think: If we can make this kind of improvement in this decade, what can we do in the decade ahead?

So as we celebrate our progress, let’s resolve to finish what we started. Let’s finish building this foundation. Let’s not be satisfied with what we’ve done in this decade. Let’s aim even higher in the next
decade.

Let’s aim higher than we have ever dreamed of.

I believe that if we can lead the nation in education progress, we can lead the nation in education -- period.

So tonight I am announcing a new initiative to set new goals for our schools. I challenge North Carolinians to raise our sights and raise our schools to an even higher level. Let’s commit ourselves to this ambitious goal:

By the year 2010, North Carolina will build the best system of public schools of any state in America. By the end of the first decade of the 21st Century, we will be first in education.

You heard me right. The best system of public education in America. The best schools. First in education.

What does that mean? It means being first in preparing our young people for the 21st Century economy. It means being first in educating and equipping them to compete with anybody anywhere. It means being first in outworking and outthinking our competitors across the nation and around the world.

How do we get there by 2010? The same way we got here. First, set clear goals. Then set benchmarks so we can measure our progress and compare ourselves to other states. Then get to work.

To get us started, I will this week issue an Executive Order directing the North Carolina Education Cabinet to develop a set of First in America School Goals. These goals will set out exactly what we believe it will take to be First in America by 2010. They should include these measures of true excellence in education:
 

The Education Cabinet is the right group to do it. It was created by the legislature, and is chaired by the Governor. It includes the Superintendent of Public Instruction, the Chairman of the State Board of Education, the President of the University of North Carolina system and the President of the Community College System. Our private colleges and universities are also represented.

The Education Cabinet is made up of our best and brightest education leaders, and I want their leadership on this. Some of them are here tonight, sitting in the gallery with the First Lady. And speaking of leadership, my wife, Carolyn, has been a teacher, school board member and every week, she mentors two students in Wake County’s schools. I’d like to salute her leadership.

With her are:

Also with them are:

Ben Ruffin, chairman of the UNC Board of Governors;
Hope Williams, president of our independent colleges & universities;
Ashley Thrift, chairman of North Carolina’s Smart Start;
Rebecca Hoyle of Jacksonville, our state Teacher of the Year;
Pandora Bell of Greensboro, Principal of the Year;
Jerry Weast of Greensboro, Superintendent of the Year;

And other leaders of our state’s teachers, principals, superintendents, school boards and parents. Join me in thanking them for all they do.

The Education Cabinet -- along with our State Board of Education and our state's parents, educators and business leaders -- can make sure that we can address the entire educational system. It can make sure that all parts of the system are working together.

I will ask the Education Cabinet to develop these First in America School Goals by the start of the next school year -- September 1, 1999. Then let’s get to work meeting them. And let’s set North Carolina on a new course for the future.

Never before in our history have we set such an ambitious goal. And never before have we needed a statewide effort of this scope. Our future is at stake.

Let me tell you how I look at the future. I look at it in terms of my new grandson Jonas, who was born January 5, and my other grandchildren -- including Hannah and Joseph, who are here tonight. I want the same things for them that you want for your children and your grandchildren. Think of yours right now.

We want them to start school healthy and ready to learn. We want them to go to a good, well-built, well-equipped, safe school. We want them to have good teachers every year -- caring, committed, excited, inspiring teachers. We want them to earn high school diplomas that mean they can think for a living. We want them to go to college and acquire the knowledge and skills they’ll need to get a good job, have a good career, be good citizens and provide good lives for their families.

Isn’t that what every one of us wants for our children and grandchildren? It’s what we ought to want for every single child in North Carolina.

* * *

This is my final State of the State speech, and these are my final two years as Governor.

But I do not see these two years as the end of anything. I see them as a beginning. And I’m going to devote every ounce of my energy to this cause.

If you’ll make this commitment to excellence in education, I will do everything I can to see that the next Governor and the next General Assembly -- and the next, and the next – keep it.

I may not be running for anything, but I haven’t run out of ambition for North Carolina.

I’m not interested in building a legacy. I’m interested in building our future.

Now, some people are going to say we can’t do this. I say: bull.

The same people said North Carolina couldn’t afford to raise teachers’ salaries to the national average. But if this legislature passes the final two steps of the Excellent Schools Act, North Carolina will reach the national average in teacher salaries next year. This legislature made that commitment, and this legislature must keep it.

We launched a war against crime in 1994. The skeptics said there was nothing we could do about crime, that we had to accept it. We didn’t accept it. We put more violent criminals in prison, we more than doubled the time felons stay behind bars and today, more than 20,000 inmates are working. Crime is down in North Carolina and our people are safer. This legislature made that commitment, and this legislature kept it.

We said replace welfare with Work First. The skeptics said it couldn’t be done. Today Work First is working. More than 180,000 North Carolinians are living on a paycheck instead of a welfare check. This legislature made that commitment, and this legislature kept it.

And boy did the cynics scoff when we said give every child a Smart Start and do it without a big bureaucracy. Today, instead of hundreds of bureaucrats in Raleigh, we’ve got thousands of caring, dedicated citizens across this state working to give babies and young children better health care, better child care and better early education. This legislature made that commitment, and this legislature kept it.

And they said we couldn’t do it all and cut taxes, too. Wrong again.

North Carolina cut taxes by $1.5 billion. No state near our size cut taxes more. The people of North Carolina are keeping more of their money, and they’re getting more for their money. This legislature made that commitment, and this legislature kept it.

So when they tell you our schools can’t be first in America, just remember: They’ve been wrong about North Carolina before and they’re wrong again.

But I wouldn’t be too hard on them. After all, they’re probably some of the same folks who said that skinny kid from Laney High School in Wilmington would never make it in the ACC. They never imagined Michael Jordan would become the greatest athlete in America. But if one young man from North Carolina can do all that, I don’t believe there’s any limit to what all of us in North Carolina can do together.

* * *

We can reach the goal of being First in America by 2010. But first, we have to finish what we started six years ago. We have to finish building the foundation for the future. That means doing four things this year:

First, Smart Start. It’s established now in 100 counties, but we’re only halfway where we need to be. The last 45 counties didn’t get it till last October. They’ve barely scratched the surface of what needs to be done for their children. This is one of the most innovative and successful new ideas in this country, and this year let’s make good on our commitment to give every child in North Carolina a Smart Start.

Second, let’s finish the job of raising teacher standards and teacher salaries. This year, we’ll raise the bar for what it takes to become a teacher and stay a teacher in North Carolina. At the same time, we’re raising the salary schedule and we’re giving extra pay for extra duties and accomplishments. In the next two years, we’ll get the average teacher salary up to $42,000. That ought to be right at the national average, and that is enormous progress. But, if we want to be First in America by 2010, we’re going to have to do even more in the years ahead. The real secret to good schools is simple: it’s good teachers. Let’s give them the status, the respect, and the pay they deserve.

Third, let’s make our schools havens for discipline and order, not disrespect and disruption. Parents shouldn’t have to take their children out of public schools to keep them safe. Instead, we ought to take troublemakers out of the classroom and put them in settings where they can learn the 3 R’s -- plus respect and responsibility. Let’s make our schools safe places to learn again.

Fourth, let’s end social promotions in North Carolina’s schools. Let’s put in place real standards and accountability. Let’s ensure that students are learning the basics, and let’s guarantee that a high school diploma means what it ought to mean. And let’s make North Carolina the first state in the nation to do it.

We must stop promoting students who haven’t learned, and we must stop graduating students who aren’t ready. If they haven’t learned, it’s not right to pass them along for somebody else to worry about. And it’s not right for students to graduate with a high school diploma and not be able to get a job.

What is right is to identify the students who need help, figure out what they need and focus on giving them the help they need – whether it’s after-school programs, Saturday classes or a volunteer mentor. Every child in North Carolina has a right to a good education, and let’s keep that commitment this year.

So this is our foundation: Give every child a Smart Start. Develop and reward excellent teachers. Make schools safe places to learn. And make sure our students are learning.

Some of you may say this is the same old stuff I’ve been saying for six years. You’re right, and let me tell you: The same old stuff is the right stuff. It’s time we stick to what works.

So next week I will submit a budget that puts our money where it ought to be. And we will have enough money to do the job.

Court decisions have tied our hands to some extent. They’ve tied up a billion dollars over two years. But North Carolina’s economic growth will give us enough money to deal with that problem and pay for our top priorities: Smart Start and excellent schools. In addition, I will keep my promise to you to recommend $150 million in budget cuts each year. In fact, this year’s budget will have over $200 million in spending cuts.

Even by conservative estimates, the growth in our economy over the next five years will give North Carolina a surplus of nearly $900 million a year. The legislature did not cut taxes too much, and we do not need to raise taxes this year.

We have the money we need, but we don’t have money to waste. Every one of our education dollars must go to public education.

I am unalterably opposed to taking money out of the public schools and giving it to private schools. If you want to see me use that veto pen, send me a voucher bill.

We must put public schools first in North Carolina. That is the great tradition we inherit.

Two hundred years ago, North Carolina was the first state to establish a public university – the people’s university.

One hundred years ago, Governor Aycock and the legislature committed North Carolina to build a new school house every day – the people’s schools.

Nearly a half-century ago, Terry Sanford and this legislature committed North Carolina to give every child a quality education.

Now it’s our time. It’s our obligation to build on North Carolina’s tradition. It’s our opportunity to build a new future for our state and its people. It’s our turn to fulfill Governor Aycock’s promise -- to give every child the opportunity "to burgeon out all that is within them."

We must do it, and we must do it together.

So I close tonight by asking you – the members of this General Assembly – to accept this challenge. I ask you to make this commitment to the people’s schools. I ask you to dedicate North Carolina to the goal of being first in education.

I’m going to ask you personally, face to face, right here in this chamber tonight. When I finish, I am not going to walk down the aisle and out the door. I will come to you, where you’re sitting. I will shake hands with every member who will accept this challenge. I will ask for your help.

Let’s make this commitment – together.

Let’s finish what we started just six years ago; let’s finish building a new foundation for the future.

Let’s set a bold new course for North Carolina at the beginning of a new century.

Let’s set the goal of becoming first in education in America by 2010.

Let’s resolve to give every single child the chance to realize the full measure of their potential and their dreams.

Let’s secure for every one of them the promise that is North Carolina.

Thank you, and God bless North Carolina.